Stock Market & Business News Highlights – 2 July 2009

• On Positive global cues yesterday, Sensex opened with a positive gap of 100 points at 14,600 and move up to a high of 14,650 in first hour trades. But after initial trading hours, Profit-taking at higher levels saw the index drop to a low of 14,370 and nifty was trading near to strong support level 4260. But all EU markets opened with 1% gains which helped indian market to recover sharply and Sensex finally closed with a gain of 151 points at 14645 and nifty with 49 points at 4340 level. Except japanese nikkei, All asian market ( Taiex index, Kospi index and Straits Times) closed positive  with 1%-2.5% gains after flat openings. UK`s benchmark FTSE 100, French benchmark index CAC and Germany`s benchmark index DAX were trading with average 1.5% gains after 5 hours of tradings.
• Crude Oil prices jumped above $73 a barrel Tuesday in Asia  But in end Crude oil dropped to $70.5 again. Yesterday crude oil recovered sharply with 2% gains at $ 71.5 per barrel – Yahoo Finance
• Over reliance on exports to the developed world will be a big challenge for Asia in the second half of 2009 and the whole of 2010 as well – Mr. Stephen Roach, CNBC
• GVK Power & Infrastructure has announced at the extraordinary general meeting (EGM) that the shareholders have approved to issue and allotment equity shares, not exceeding Rs 25 billion pursuant to an offer to qualified institutional buyers (QIB)
• The government would award six shipping projects worth Rs 3,319.14 crore, to be developed on the public-private-partnership (PPP) basis, in next 100 days – BS
• India’s exports fell for the 8th month in a row in May, this time by 29.2%, due to global downturn, while imports dropped by 39.2%, reflecting slowdown in domestic consumption. – UTVi
• Punj Lloyd Group’s subsidiary clinches Rs 1263.11 crores (S$ 378 million) LTA Project to build MRT stations in Singapore – BSE
• Tata Motors total sales of Tata commercial and passenger vehicles declined by 4% to stand at 45,399 vehicles as against 47,245 vehicles sold in June last year – BSE
• TCS , Wipro and Infosys, apart from SAP and IFS Defense, are pursuing contracts worth Rs 2,000 crore from the country’s defense forces, the Indian Air Force (IAF) and the Army, who are seeking to modernise their processes and become more efficient organisations – ET
• Government hiked in diesel price by Rs 2/ liter and petrol price by Rs 4/ liter with effective from 1st july 2009 but there was no change in LPG and kerosene – BS

Today’s Sensex & Nifty Trading Calls

• Stock Market Pre-opening Outlook: Sensex was closed 151 point up and nifty was closed above 4320 level but below 4350 level. All asian markets and global markets were trading with some positive outlook so we may see some buying interest above 4350 levels in nifty. Next level to go long in index stocks is 4390 as we have seen heavy resistance in last 2 days. Market was not able to close above that level. If market trades above 4390 for hours then we may see 4440 levels tomorrow for next 4550 level on friday. But on down side, 4260 and 4220 are the major supports.
• On 1st July 2009 ,  (Provisional Data) Foreign institutional investors (FIIs) were net buyers of Rs. 186 crore and Domestic institutional investors (DIIs) were net sellers of Rs 76 crore on Indian Stock market benchmark Bombay Stock Exchange – BSE Data, BS
  
• Nifty Levels: Current: 4340 Support Level 4320, 4260, 4220 Resistance Level 4350,4390, 4440
• Please book your profits in all railway stocks like Kalindee Rail, Titagarh Wagons, Texmacho, Mic Ltd and Kernex as friday is rail budget and we may see some profit booking on friday or monday. Even though rail budget will be good we should take a risk as 2 budgets are coming in a week.
• Buy Punj Llyod: CMP 213 Target 220, 2
• Buy RCOM: CMP 298 Target 307, 313 Stop Loss 293
• Buy HPCL: CMP 311 Target 317, 326 Stop Loss 306
• Buy Tulsi Extrusions Ltd: CMP 21.8 Target 22.5 Stop Loss 20.5 ( Hold it with Short Term Target 28 and SL 20)
• Buy TCS: CMP 392 Target 401, 412 Stop Loss 38523 Short Target 228 Stop Loss 209
• Buy Everonn Systems: CMP 449.5 Target 462, 467, 471 Stop Loss 442
• Buy Sun Pharma: Target 3-5% Gains on card ( 1135, 1155 )
• Watch Container Corporation India
• Past Trading Calls View Here

Mid-Session Updates